A cashless payment specialist in the Midlands has snapped up a rival and created a business with a targeted combined turnover of £5 million.

South Warwickshire-based VMC has bought Hertfordshire operation Cardinal for an undisclosed sum.

A company spokesman said the deal would "significantly strengthen VMC's position at the forefront of the cashless payment industry".

The move would boost its presence and market share, particularly in the education and retail sectors, he said.

Southam company VMC develops, designs and manufactures hardware and software for vending and catering operators. It also provides support services. The business, along with Cardinal, specialises in cashless technology where an electronic credit is added to "smart cards" to make purchases, predominantly in staff restaurants and at vending machines.

The Cardinal operation, at Kings Langley, will from September 1 be relocated to Southam, with the combined business employing 32 people.

VMC managing director Nick Bate said: "As VMC already enjoys a respected reputation as one of the industry's biggest players, this exciting deal provides the opportunity to move the business even further forward.